XJO – Chart Review
The XJO is now trading at the upper band of the consolidation channel that’s been in place since mid-last year.
23/4/2022 Update:
Update 14/5
30/5 update:
Bluescope Steel – Algo Buy
ASX:BL is under Algo Engine buy conditions. BSL provided a trading update and now expects EBIT for 2H FY22 to be $1.375-1.475bn.
The more robust outlook is driven by improved earnings expectations for North America with better-than-expected realised steel prices and spreads in the United States.
Based on FY23 earnings we have Bluescope on a 2.3% forward dividend yield.
Pexa – Accumulate
Pexa Group has helped transform conveyancing from a clunky paper-based process into a digital one.
FY21 underlying earnings doubled to $110 million and analysts are forecasting a further 20% increase in FY22.
CBA & Link are major shareholders.
BHP
Rebasing investor expectations for BHP without the contribution from its petroleum business places the stock on a forward yield of 6% with flat to lower adjusted EPS into FY23.
Iron ore now represents around 50%, Copper 25%, with Coal and Nickel remaining other key exposures. We expect the eventual divestment of its remaining thermal coal assets.
Fisher & Paykel
Fisher & Paykel Healthcare Corporation is under Algo Engine buy conditions and we expect FY22 to be the low point in earnings, with FY23 and FY24 returning to double-digit EPS growth.
Tabcorp Demerger
Tabcorp split into two businesses yesterday:
- A wagering business, which will continue to be called Tabcorp (TAH)
- And a lotteries business, new name The Lottery Corporation (TLC).
Global Banks
BetaShares Global Banks offers exposure to a recovery in global bank shares.
Gold Road – Buy
Gold Road Resources is under Algo Engine buy conditions.
GDX Gold ETF – Buy
Vaneck Vectors Gold Miners is under Algo Engine buy conditions. GDX provides broad exposure to the leading global gold producers.
Newcrest – Algo Buy
Newcrest Mining is under Algo Engine buy conditions.
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